P&G Market Analysis

PROCTOR AND GAMBLE COMPANY
DECISION SHEET
The LDL market segmentation for Procter & Gamble is based on three main product attributes. Performance describes the product’s primary cleaning benefit, mildness describes the gentleness on hands, and price provides the benefit of low cost. P&G positioned its three LDL brands very differently. Ivory is positioned to appeal to females, primarily middle-class mothers, who enjoy the benefit of younger looking hands. Advertisements depict a mother/daughter comparison to illustrate this youthful appeal. Its creamy-white color and light scent relates this LDL to the Ivory bar soap, which consumers recognize for its mildness. Dawn is positioned purely as a performance LDL for those who seek superior grease-cutting abilities. By allocating most of the marketing budget towards coupons, this brand seeks early-adoption by new customers in hopes of promoting brand loyalty among households. Joy is the original LDL manufactured by P&G, and is positioned as a reliable and recognizable option due to its unique yellow color and fresh lemon scent.
Procter & Gamble should implement product improvements on an existing brand. As a successful, established performance brand primarily recognized for its grease-cutting abilities, Dawn is the preferred brand for performance improvements. The improvement of an existing brand will require roughly $20 million in capital costs, similar to those required to introduce a new brand. However, while a new brand would need more than $60 million in marketing expenditures, a product improvement needs only $10 million. Additionally, a new brand introduction would require two years, plus another year in a test market, while a product improvement requires at most two years. Though this is longer than the time required to gain approval for increased marketing expenditures, it will likely…...

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...Summary Statement/Abstract
P&G is a global company that is involved in many different markets including beauty and grooming and household care. The company has been through a lot of change due to the O2005 project that was undertaken in 1999 and saw a complete overhaul of the company during those years. One product that also was involved a lot during that time was the SK-II skin care product which was popular in Japan and a man named de Cesare wanted to take the product global to either the Chinese or European market. However, in order to do this there was a lot of analysis and research which had to be done to determine which market was the best to move the product to and de Cesare had to make a recommendation to the GLT knowing that he must do everything possible to make sure he made the best decision possible.
As Paolo DeCesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting?
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...P&G Case
Executive Summary
This case study analysis is on the Proctor & Gamble Company (also referred to as “P&G”).
Procter & Gamble is the world's largest producer of household and personal products by
revenue, with its products reaching 4 billion people worldwide. The Case Study includes an
Introduction, Company Overview, Company Mandate, Internal Analysis, and External Analysis,
followed by various Strategic Options (see below). The author then makes a Final Strategy
Option Recommendation.
Strategic Option #1: Market to Lower-Income Consumers in both Developed and
Emerging Markets (Expand and Build Beauty Segment strictly aimed at Low-Income
Consumers). Industry Consolidator.
Strategic Option #2: Given the maturity of the North American/Western European market,
combined with the emerging popularity and demand for Natural/Organic ingredient products,
P&G should look to create New Natural Products and Products tailored to the Male market -
Multiple Segments, not just Skin Care (Expand and Build Beauty Segment). Industry
Consolidator.
Strategic Option #3: Related Diversification through Acquisition.
Strategic Option #4: Joint Ventures in Emerging Markets such as China and India.
Final Strategy Recommendation: The Recommendation is to go for a combined Low-Income
segment and New Natural Product strategy as this facilitates P&G’s need to capture a greater
slice of the Low-Income consumer market both in Mature and Developing markets, which also
capturing a......

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...1987 and 1990, worldwide sales for P&G had increased by $8 billion and net earnings by $1.3 billion. This success was due to variety of factors, including the ability to develop truly innovative products to meet consumers’ needs. Of the many products introduced throughout the 3 years, Scope, mouthwash, held 34% of the Canadian mouthwash market. Although there was success, there had been concerns with competition and the major changes happening in the mouthwash market. Up until 1988, most mouthwash was marketed primarily on a “bad-breath” strategy. However, Listerine introduced a plaque and inflamed gums preventing mouthwash. New flavors were introduced by a number of brands and it greatly expanded the market in 1987. In 1988 Colgate launched a mouthwash that included fluoride to fight cavities with a mild taste that encouraged children to rinse longer and more often. Finally, Pfizer launched a “prebrushing” rinse called Plax. Although P&G’s Scope held over 30% of the market share in 1990, they recognized that the industry was changing. The market was indefinitely moving towards healthier alternative.
2. Scope’s performance during the past three years can be considered extremely successful. Although it is marginal, in 1988, Scope’s market share was 33% but by 1990 the percentage fell to 32.3%. During the slim decline, Plax’s market share jumped from 1% to 10% in two years. Therefore, the sudden growth in Plax’s sales should be a concern for P&G’s Scope.
3. There are......

...Statement (Actual) 4
Mission Statement (Proposed) 4
Vision Statement (Proposed) 5
Slogan (Proposed) 5
The CPM Matrix of P&G Company 6
External Factor Evaluation (EFE) Matrix for Procter and Gamble (P&G) 9
The I/E matrix for Procter and Gamble (P&G) 14
Internal Factor Evaluation (IFE) Matrix for Procter and Gamble (P&G) 16
A SWOT Matrix of P&G Company 21
Strengths 23
Weaknesses 23
Opportunities 24
Threats 24
The FOUR strategies 25
The SPACE Matrix 26
Calculation 27
The SPACE Matrix chart 28
The BCG Matrix 29
The BCG Matrix chart 29
The Recommended Long-Term Planning 30
Income Statement and Balance Sheet for Procter and Gamble (P&G) 32
The Recommended Annual Objectives & Policies 35
The Recommended procedures for strategy review and evaluations 35
References: 37
Case Abstraction
The Procter & Gamble Co., also known as P&G, is based in the United State of America. Mr. William Procter and Mr. James Gamble are the founders of the company in 1837, and this tell the story behind the company’s name. The P&G company is born when Mr. William, a candle maker from England and Mr. James, a soup maker from Ireland in Ohio. They are met eventually when they married sisters. The company is headquartered in downtown Cincinnati, Ohio, United States. Mr. Bob McDonald is the current CEO of P&G Company. He has a philosophy of focusing on lower-end products. Whereas, Mr. A.G. Lafley, who focus more on the......

...S. W. O. T. Analysis :( P & G)
Strengths
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• The strong branding of P & G makes it one of the most successful brands in the world.
• The company has a vast experience in oral and personal hygiene products as they are working since….
• Also, it has an extensive experience in marketing in different market segments and is one of the best marketers in the world.
• P & G is tightly integrated with some of the largest retailers in United States of America as well as world around. and around the world Distribution channels all over the world
• Gross profit margin of the company is 15 times the industry average
• P & G is known for its diverse brand portfolio. The company is able to customize its global products and brands according to the local preferences.
• P & G invests greatly in its research and development to. About $2 billion are invested every year by P & G for improving and introducing new products. The end-consumer understanding of P & G and its large database of consumers make its research and development strong.
Weaknesses
• Many of the top brands of P & G are losing their market share rapidly. In online media leadership and presence P & G is lagging behind.
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...review to analysis the impact of diversification on Procter & Gamble in different time period. The analyses of Procter & Gamble will be carried out in 3 perspectives: the operation of business, the performance of business and the brand of business.
Literature Review & analyses of organization
Diversification can be defined as a strategy used to increase the range of products or markets of organization. (Johnson, Scholes & Whittington, 2008) There is a range of reasons result the diversification of organization such as spreading the business risk and increasing the business expectation of stakeholder. (Johnson, Scholes & Whittington, 2008) But the result of research from Aisjah and Subroto (2011) indicated that there are two main reasons boost the diversification of business: firstly, diversification expands the economics of scope of the organization; secondly, diversified business helps organization develop the market power. Similarly, Kotler & Armstrong (2008) also claimed that the diversification enable organization acquire business not only from current products and markets but also from outside. Moreover, diversification also assists organization to allocate tangible resource more efficiently. (Helfat and Eisenhardt, 2004)
This essay will focus on the business running of Procter & Gamble in Singapore from 2005 to 2012. In 2005, P&G announced an acquisition of Gillette Company. (P&G annual report, 2005) After the acquisition,......

...CASE STUDY ANALYSIS OF P&G: SK-II GLOBALIZATION PROJECT
FOR:
Professor Howard Kupferman
Written by:
Andres Torres
Procter and Gamble Case Study Analysis
Actors:
1. Alan Lafley: Head of P&G Beauty Care GBU
2. Paolo de Cesare: President of Max Factor Japan
3. Durk Jager: P&G CEO
4. GLT: Global Leadership Team (made up of business GM’s of crucial MDO’s, people from R&D, consumer research, product supply, HR, and finance). Chaired by Lafley.
INTRO:
In this case study we are introduced to P&G as an organization and their changes in structure overtime. More specifically, after the acquisition of Max Factor Japan and success in its SK-II line, questions are raised about whether global expansion is feasible and profitable as a franchise. De Cesare ran this skin-care line in Japan, but he reported directly to Lafley. This is crucial because global expansion would require Lafley’s approval in budgeting and organizational support. P&G recently went through major organizational changes over a period of six years known as O2005. This created huge questions in the strategy that would be put together in the case of a global expansion for SK-II. Within the U.S. Procter & Gamble originally followed an organizational structure consisting of seven different divisions that were furthermore shattered into 26 distinct categories. Each category had its own R&D, supply management and marketing. In addition, the international......

...functional value.
1.2 The sales people concerned that if they launched a product without enough difference from other products, retailers would replacing units within the existing line. The sale of Scope may decline, or P&G may pay 50000 per stock-keeping unit in listing fees to add the new brand. Either way was costly.
1.3 The Market Research people concerned that Adding reassurances to a product often takes time before consumer accepts the idea.
1.4 The Market Research people concerned that if they launched new products, the new one might cannibalize a large amount of Scope’s sales.(Like warner-lambert, they launched listermint but listermint’s market share "primarily at the expense of listerine and smaller brands")
1.5 The Finance people concerned that launching a line extension would cost a large amount of money.
1.6 The Purchasing people concerned that when P&G launched new product the price of ingredients would increased by 50% and the packaging costs would increase by 0.3 USD per unit.
2 High risk
2.1 The PDD people though it was not easy to replicate Plax’s clinical results with P&G’s stringent test methodology.
2.2 Market Research people concerned that the launch of new product might not increase competitive users’ desire to purchase Scope.
2.3 If P&g launched new product, other companies would also do the same thing.(Game Theory)...

...Industry Valuation Analysis
The Procter & Gamble Company and Unilever
Group 5
Date: 03/18/2016
Project #: FINC 5300-WINTER 2016
Prepared for: Joan Miao
Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan
Date: 03/18/2016
Project #: FINC 5300-WINTER 2016
Prepared for: Joan Miao
Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan
STRATEGY ANALYSIS
Macroeconomic Environment Overview
U.S. growth has been recovering since the end of 2014, powered by private consumption. The labor market has been improving as well. The Eurozone is recovering on the heels of increases in private consumption and exports and growth is continuing to expand mildly. Growth in the emerging markets has been decelerating relative to the past in view of China’s structural slowdown, declining commodity prices, a downturn in foreign investment and the need to base growth on domestic demand.
The developed countries’ monetary policies are likely to change direction gradually. In our judgment, the Fed will begin liftoff at a moderate pace, bringing its rate to about 1.0% by the end of 2016. Eurozone interest is unlikely to change in 2015 and 2016.
Roughly Two thirds of The Procter & Gamble Company (P&G)’s revenue is from outside the United States. In fiscal 2015, net sales of all five-business segments were negatively affected by foreign currency fluctuations due to strong dollar, boosted by recovery of U.S. economy (See......

...Scope
The problem for Procter & Gamble`s (P&G) “Scope” brand is that their share at mouthwash market is slightly going down while a new brand called “Plax” launched by Pfizer Inc. has gained a %10 market share in a very short time period which created a situation that left “P&G”s management team in dilemma for how to respond.
P&G has some constraints to solve the problem (in fact, the situation is so complex that for some, no problem and threat exist). First of all, if they introduce a new product in the mouthwash market as a competitor against Plax; they are not sure if it will be really innovative or it will focus on unmet consumer needs. Another limitation is that introducing a new product to the market will cost a lot (even the test production costs $20,000. Capital costs, marketing costs, delivery costs, inventory costs, ingredients costs, packaging costs are other important costs which create concerns) and also will require an effective strategic management. After that, the new product is very similar to Plax and has no significant advantage except a better taste; on the other hand, sales department thinks that for success, the product must be seen as unique. So, P&G can not be sure about the future success of this product. Next, for the new product to gain reassurance, patience is needed. This can only be achieved in the long period. Following this, the new product will also reduce the sales of Scope. Additionally, P&G is not sure about the name of the product......